HDFC Securities has a buy call on IDFC Bank with a target price of Rs 45.The current market price of IDFC Bank is Rs 39.70.Time period given by the brokerage is 1-4 weeks when IDFC Bank price can reach the defined target.
HDFC Securities recommended keeping a stop loss at Rs 35.The view of the brokerage on the stock:After falling from a high of Rs 49.55, IDFC Bank found support around the Rs 32.7 level and made a double bottom around those levels in October 2018.
The stock then consolidated in a range between Rs 34.7-36.85.Last week, the stock broke out of this range on the back of above average volumes, which indicates that significant accumulation has happened in this counter.Technical indicators are giving positive signals as the stock trades above the 13-day and 50-day SMA.
Daily and Weekly momentum readings too are in rising mode and not in extremely overbought territory."We believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming weeks as it attempts to test its previous intermediate highs.
We, therefore, recommend a Buy at CMP and adding more on any dips," the brokerage said.